Tesla, GM, Other EV Sales To Tumble By 50% As Trump Ends Federal EV Credits Later This Month, Says Expert: Report

Sales of electric vehicles from Tesla Inc. (TSLA), General Motors Co. (GM), Ford Motor Co. (F), and other players in the U.S. could be cut in half as President Donald Trump’s “One Big Beautiful Bill Act” ends federal EV credits later in September, according to an automobile industry expert.

According to a report by Yahoo Finance citing inputs from iSeeCars.com analyst Karl Brauer, although EV sales could rise in the third quarter (Q3) due to a potential rush from buyers ahead of the September 30 deadline for claiming EV tax credits, they would see a steep fall off once the deadline kicks in.

Tesla’s shares gained 4% in Wednesday’s opening trade, while GM’s shares edged up by 0.03% and Ford’s shares were down 0.55% at the time of writing. Retail sentiment on Stocktwits around Tesla and Ford trended in the ‘bearish’ territory, while users felt ‘neutral’ about GM.

“I think then ... we're going to see a pretty big drop. I could see US [market share] dropping well below 4% immediately after the September 30 incentive goes away and maybe settling in the beginning of 2026, around 4%,” Brauer added. According to data from Cox Automotive, EVs held a 9.1% market share in the U.S. in July, rising from 8% in June and 6.9% in May.

Brauer added that companies could try to keep the sales momentum going by offering discounts on their EVs once the federal tax incentives expire at the end of September.

This comes at a time when EV giant Tesla is struggling in Europe, with sales plummeting across several countries in the region in August.

TSLA stock is down 18% year-to-date, whereas GM stock is up 10% and F stock is up 18%.

Also See: Tesla Sales Continue To Tumble In Germany As Its Struggles In Europe Continue: Report

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